Debt Settlement in Massachusetts

Are you tired of living a life surrounded with debt? Are your debt amounts so huge that consolidation will not help?

Massachusetts Debt Settlement can be an option you can use when consolidation does not work. By making just the minimum monthly payments you can get rid of your debts within a short time.

What bills can be settled?

  • Cell phone expenses
  • Credit card bills
  • Personal bills
  • Medical expenses
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How does the Massachusetts debt Settlement process work?

Massachusetts debt settlement helps by reducing your debt by nearly 40-60%. If the debt settlement process is successful you can even save some money at the end of the process.

You can settle your debts in Massachusetts in two ways:

A. Settle Your Debts by Yourself:

In Massachusetts you can negotiate your debts by yourself. When settling your debts, you ask your creditors for reductions in your principal and interest.

You need to convince your creditors about your financial condition. If they feel that you are likely to file for bankruptcy, then they may agree to a debt settlement plan.

If you want to settle your debts by yourself there are a few basic guidelines that you need to follow. They are:

  1. Know about your state's settlement laws.
  2. Convince your creditor about your inability to keep up with the monthly payments.
  3. Offer a lump-sum amount as the settlement sum to your creditors.
  4. Propose a repayment plan if you are unable to offer a lump sum settlement.
  5. Keep track of your accounts and note whether they have been reported as "settled" or "paid" by your creditors.

B. With the help of a Debt Settlement Company:

Debt settlement can be a difficult process if you are not comfortable handling your creditors by yourself. It is therefore advisable that you opt for professional help from a reputable debt settlement company. When deciding on a debt settlement company, check out its accreditation with the Better Business Bureau (BBB).

Working with a company is highly advantageous because the company works with your creditors on your behalf. The negotiation process is carried out by a debt settlement attorney who further notifies your creditor to stop all abusive actions.

If you can't afford to make a lump sum settlement, try proposing a repayment plan that will allow you to pay with comfortable installments.

Duration of a Massachusetts Debt Settlement Program

Massachusetts debt settlement depends on various factors like:

  • Kind of debt,
  • Outstanding debt amount,
  • The number of debts you intend to settle.

The duration for settling credit card debts in Massachusetts is 3-9 months and for other debts 1-3 years.

How Massachusetts Debt Settlement affects your Credit Score

Massachusetts debt settlement provides for various customized debt settlement programs that help in improving your credit score. In the beginning the debts you have already incurred effects your credit scores negatively.

However, if you make regular payments on your account, your credit scores increases considerably. If you settle your delinquent accounts, your credit scores get a steady hike. When you have paid down all your debts and your accounts get marked as "paid off"/ "settled" your credit score recovers.

Benefits of Massachusetts Debt Settlement

  • Monthly payments are reduced.
  • Have to pay only the minimum qualifying amount.
  • Can save money at the end of the process.
  • End collection calls from creditors.
  • Credit scores are improved.
  • Bankruptcy can be avoided.

Tax Consequences

Any amount forgiven under a debt settlement program is considered income by the IRS. You need to report it on your income taxes for the year the debt was forgiven.

If you qualify as insolvent on the day before your debt was forgiven, you do not need to pay taxes on the forgiven amount.


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